Member Info for booboouberbear

Couldn’t agree more, it is bewildering, that on a day where the US Federal Reserve bins it’s 40 year old inflation policy, that this would result in a crash in PMs and a surge in the US$ Dollar, it shows the levels of corruption that surge through the market and to what extent the established world order will go to in order to maintain the financial status quo.

It can’t last!

Looks like another orchestrated attacked on the Gold / PM Complex this afternoon, perfect day to do it with Powell speaking and they have the added benefit of being able to Murder the retail punters out of the market at month end when the ETF physical deliveries come due.

As expected, if inflation runs over 2%+ at some point in the near future (it will) then they will let it run an pretend it all averages out over time and because employment is way below full employment they will still use their monetary tools to print cash.

This is their get out of clause so as not to raise interest rates when inflation starts to top 3%+, because if they did they’d floor the economy.

Expect hard assets to do extremely nicely in the years to come.

Watching it live, god it's a tough watch lol.

He has to sell it because they have ran out of road, public and private debt is now off the scale and has now gone parabolic and it’s all linked to interest rates that are at or close to 0% and have been for 12 years+ now.

Any serious uptick in interest rates will bankrupt the US Housing Market and the US Stock Market, where an incredible 40% make no money or lose money and survive on ‘free’ money and have become part of the ‘US Zombie Economy’.

They can now only let inflation ‘run hot’ for a few years to try and grow the economy and peg back real debt levels by letting inflation rot them away from the inside.

It will flatten and cause an exodus form the US Bond Market as all these US Treasuries are not inflation linked and it will lead to the US Federal Reserve having to buy (monetise) even more of the US Government’s own debt, causing the US Federal Reserve’s Balance Sheet to explode.

It’s a gargantuan mess and they now only have inflation left.

There is a bit of ‘quality of life’ in those figures but it doesn’t explain why Existing and New Homes Sales in the US when combined are now at the highest levels since just after the 2007/2008 crash. The economy just doesn’t support those raw numbers.

Same as the Durable Goods Numbers from the US today, shot up 11%+, they have no regained all of the losses from the April and May slump, again, the economy just doesn’t support those raw numbers when 28m people are still claiming some sort of unemployment benefit in the US and U6 Unemployment is at 16%.

This is a bubble being pumped up by the Federal Reserve and we shall see where it all ends.

Check out the AUX action price when these numbers set in today, don 1.3% now up 0.5%, some of the more smarter people out there clearly twigged that this is all inflation from new minted money leaking in to the general diaspora.

If anyone wants to see the real inflation rates and bubbles being blown by the US Federal Reserve then look no further than the US Housing Market.

Despite, the high US Unemployment, sales of new single-family homes in the United States just rose by their most in about 13 years, all that money created is leaking out and creating crazy asset bubbles in both the US Stock Markets and also the US Housing Market, the US Federal Reserve will create the same housing crash they created in 2007/2008, you can’t create a housing market that doesn’t reflect your economy, sooner or later it will crash to the ground:

https://tradingeconomics.com/united-states/new-home-sales

I would also add that by Powell now admitting (come Thursday) that the 2% inflation target will be removed and replaced by a 2% average inflation target I think we all know what this really means, there is now so much debt in the system that they now intend on inflating it away.

Last week’s release of the minutes of the last Federal Reserve meeting was purely intended on stopping the slide of the USD$ (which it was successful in doing). Jackson Hole will be rinse and repeat. The trick for Powell is to try and not undermine the USD$ while clearly signalling to the market that QE Infinity will not be stopping, because if they thought that for a second the price and valuation of the US Stock Market (which is now utterly detached from all reality) would fall out of the sky (the valuations on some USD$ 100 Billion Dollar Stocks are now in the thousands of P/E Ratios).

This week at Jackson Hole, it may well boost the price of the USD$ and push AUX down, we will see. But long term the US Pyramid Scheme will be unaffected and Gold will eventually prevail.

If there was no US Federal Reserve policy of buying everything that moves then the US Stock Market would fall back to Financial Crash 2009 levels (because that is where the historical valuations are) and it would take down the whole system and economy with it, like all Pyramid’s, a Pyramid is only as tall as its base is wide, the cash has to keep coming in at an amplified rate to keep the base intact and the Pyramid standing, that means more and more cash has to be printed and there would seem to be no escape doors from this policy IMO.

This will all catch up with the Greenback one day, when is harder to predict.

It’s interesting that Barrick spent USD$55m on it in the first place, they obviously think (thought) that it could have been at one point a 500k+ per ounce per year multi-year LoM high grade asset.

They obviously now know it wasn’t that, but considering they only deal in 500k+ per ounce per year mines their geologists / specialists at one point must have been very excited about.

We will be looking at a multi-million ounce resource here when it’s all been proved up and really high grades and the annual production could be very exciting for us IMO.

BTB,

10000% spot on.

If anyone wants to see how corrupt the Gold / PM market has become, just look at the last two trading days, at approx. 3:30/4pm yesterday and today the price has been hammered down, yesterday went straight back up, we will see what today does.

It appears to be becoming easier and easier to do, no regulator seems to care, so why not fill your boots via an orchestrated attack (which this clearly is when you compare the massive amounts of volume traded at exactly the same time when compared to the volume for the rest of the day).

Worth remembering that Barrick ploughed USD$55m into exploration at West Kenya, it’s going to be interesting to see what that buys you in terms of results. There is clearly some huge gold boulders in there judging by the g/t readings that have been released so far.

For me I want Singida financing / mining plan next and the updated New Luika reserve after the 2019 / 2020 exploration programme, it would be great if we could add a couple of more years to the New Luika reserve.

Great news for it to be official.

https://www.forbes.com/sites/mikepatton/2020/08/14/national-debt-to-surpass-78-trillion-by-2028-what-it-means-for-americans/#7ce285f5ddf9

Buffet and Co don’t make short term bets, Berkshire has and always will be a long term investor is search of yield, and it tells you what they think about Gold to have done this, until recently they used to laugh at Gold, this is quite a stunning turnaround.

The above article on US National Debt and Budget Defect projections tells you why Buffet and Co have done an about face.

https://markets.businessinsider.com/commodities/news/gold-price-ray-dalio-invested-400-million-precious-metal-q2-2020-8-1029501695#

Interesting prices data in the US the last two days or so, Core and Producer Prices as well as Import and Export prices have had their strongest showing in years (3 decades in Core Inflation Data’s case on a month on month basis).

With only about 35% of the job losses in the US having been brought back into employment so far and 30m people in the US still drawing some kind of unemployment benefit the Federal Reserve won’t be touching interest rates any time soon.

Add that to a generation that has built an economy on 0% interest rates for the last 13 years and a government running 20% budget deficits based on borrowing at 0% it’s hard to see any other outcome for the US other than an currency devaluation and an inflationary car crash.

I’m watching the same action, the weekly US Job Nos. have taken on increased important during the Covid-19 Pandemic and there is an increasingly intense speculation around them in the few hours leading up to them and if I was a cynic you’d say outright leaks are occurring…

AUX has just dropped by 2% in the last hour?

Big jump...

https://www.google.com/amp/s/www.fxstreet.com/amp/news/us-annual-core-cpi-rises-to-16-in-july-vs-11-expected-202008121233

It's took off, something is inbound IMO.